Aldar chiefs predict profitable 2009

Aldar Properties chiefs insisted on Wednesday that the company can buck the real estate industry downturn and remain profitable in 2009.

During the Abu Dhabi company’s annual general meeting, chairman Ahmed Ali Al Sayegh said Aldar’s solid foundations would make it more resilient to the financial crisis. He added strong growth in 2008 is expected to continue this year.

“2008 was an important year for Aldar, a year that witnessed completion and delivery of several projects. It was one in which the business continued to grow consistently and profitably following our clear strategy,” Al Sayegh said in comments reported by news agency WAM.

“The improvement in our sales, profitability and net asset value is testament to the fact that our strategy is working and the business is building an ever greater momentum.”

Other findings from the AGM show operating profit increased to $598.9m from $272.2m, while net assets value climbed 108.5 percent to $4.35bn from $2.09bn last year.

Al Sayegh also revealed that Aldar’s under construction developments increased from $2.25bn in 2007 to $6.23bn during the same period.  

While announcing the figures, Aldar chiefs said the company was well prepared for the market downturn.

A company statement said: “The board has confidence in the leadership team's ability to take important decisions to ensure the group is able to succeed throughout the prevailing market conditions, ensuring shareholders benefit.

“The company has an increasingly robust investment portfolio that will withstand the passage of time and which will deliver high quality results on a consistent basis.”

Some Middle Eastern property companies have announced cutbacks or project delays as the credit crunch continues squeezing the industry.

In January, Aldar Laing O’Rourke, a joint venture between the property firm and UK construction company, announced it was cutting more than 500 jobs.

The company also said it was putting schemes within Al Raha Beach development in Abu Dhabi on hold.

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